Roth conversion clarification

[Kea]

I know Roth conversions done this year are taxed on the 2011 and 2012 returns. I just want to clarify that that is when the income is included, too. Client is in the 15% tax bracket and is taking capital gains this year to take advantage of the 0% rate. Here broker is telling her that a Roth conversion would make her income too high to take advantage of the 0% LTCG rate. I don't think so, but just wanted to make sure the IRS wasn't including the income in 2010 even though the tax was 2011 & 2012. (IRS can be good at making things more complicated than they need to be, sometimes!)

Thanks

[windmill]

According to what I am reading from a Edward Jones publication, the taxpayer may elect to defer the income into 2011 or split the income for 2011 and 2012 or include the income into 2010.

[Kea]

Yes, I know about the election. I'm just verifying that it applies to the income as well as the tax. That would be the logical thing. (But IRS = logic?)

[TAXBILLY]

http://www.rothira.com/

taxbilly

[Kea]

Thanks so much.